American National Announces Third Quarter 2019 Results
November 04 2019 - 2:28PM
American National Insurance Company (NASDAQ: ANAT) announced net
income for the third quarter of 2019 of $92.2 million or $3.43 per
diluted share, compared to $173.5 million or $6.44 per diluted
share for the same period in 2018. Net income for the third quarter
of 2019 included after-tax net gains on equity securities of $6.8
million or $0.25 per diluted share compared to $99.9 million or
$3.72 per diluted share in the third quarter of 2018. In addition,
net income for the third quarter of 2019 also included after-tax
realized investment earnings of $47.1 million or $1.75 per diluted
share compared to $6.9 million or $0.26 per diluted share for the
same period in 2018.
Net income for the nine months ended September 30, 2019 was
$449.2 million or $16.71 per diluted share, up from $276.4 million
or $10.26 per diluted share for the same period in 2018. Net income
for the nine months ended September 30, 2019 included after-tax net
gains on equity securities of $222.8 million or $8.29 per diluted
share compared to $118.9 million or $4.42 per diluted share for the
same period in 2018. In addition, net income for the nine months
ended September 30, 2019 also included after-tax realized
investment earnings of $89.1 million or $3.31 per diluted share
compared to $16.9 million or $0.63 per diluted share for the same
period in 2018. The increase in realized investment earnings was
primarily due to the sale of real estate investments in joint
ventures.
After-tax adjusted operating income for the third quarter of
2019 was $38.3 million or $1.43 per diluted share compared to $66.7
million or $2.46 per diluted share for the same period in 2018. The
decline in the third quarter after-tax adjusted operating income
was primarily due to lower margins in our annuity segment
reflecting a decline in interest rates and to a lesser extent the
impact of a significant contribution to our pension plan in the
third quarter of 2018 that reduced tax expense and improved
earnings for that period.
After-tax adjusted operating income for the nine months ended
September 30, 2019 decreased slightly to $137.3 million or $5.11
per diluted share compared to $140.6 million or $5.21 per diluted
share for the same period in 2018. In addition to the
aforementioned 2018 tax reduction and lower annuity margins, we
experienced stronger earnings from our life and property &
casualty segments during the first nine months of 2019 compared to
the same period in 2018.
A reconciliation of adjusted operating income, a non-GAAP
measure, to GAAP net income is included in the table below.
Additional Highlights Summary:
- Total life insurance in force continued to increase to $116.0
billion, an increase of $5.7 billion since December 31,
2018
- Book value per diluted share as of September 30, 2019 increased
to $216.69, compared to book value per share of $195.32 on December
31, 2018
|
American National Consolidated Financial
Highlights |
(Preliminary & Unaudited in millions, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income (GAAP basis) |
|
$ |
92.2 |
|
|
$ |
173.5 |
|
|
$ |
449.2 |
|
|
$ |
276.4 |
|
Adjustments to eliminate the
impact of: |
|
|
|
|
|
|
|
|
Unrealized gains on equity securities |
|
$ |
2.9 |
|
|
$ |
105.7 |
|
|
$ |
204.0 |
|
|
$ |
115.1 |
|
Net gains (losses) on equity securities sold |
|
3.9 |
|
|
(5.8 |
) |
|
18.8 |
|
|
3.8 |
|
Net gains on equity securities |
|
$ |
6.8 |
|
|
$ |
99.9 |
|
|
$ |
222.8 |
|
|
$ |
118.9 |
|
Adjustments to eliminate the
impact of: |
|
|
|
|
|
|
|
|
Net realized investment gains (losses) |
|
$ |
25.3 |
|
|
$ |
(1.0 |
) |
|
$ |
19.7 |
|
|
$ |
3.8 |
|
Equity in earnings of unconsolidated affiliates |
|
35.6 |
|
|
10.3 |
|
|
80.8 |
|
|
14.9 |
|
Net income attributable to noncontrolling interest |
|
13.8 |
|
|
2.4 |
|
|
11.4 |
|
|
1.8 |
|
Net realized investment earnings |
|
$ |
47.1 |
|
|
$ |
6.9 |
|
|
$ |
89.1 |
|
|
$ |
16.9 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income(1) (non-GAAP basis)* |
|
$ |
38.3 |
|
|
$ |
66.7 |
|
|
$ |
137.3 |
|
|
$ |
140.6 |
|
|
|
|
|
|
|
|
|
|
Per diluted share |
|
|
|
|
|
|
|
|
Net income (GAAP basis) |
|
$ |
3.43 |
|
|
$ |
6.44 |
|
|
$ |
16.71 |
|
|
$ |
10.26 |
|
Net gains on equity securities |
|
0.25 |
|
|
3.72 |
|
|
8.29 |
|
|
4.42 |
|
Net realized investment earnings |
|
1.75 |
|
|
0.26 |
|
|
3.31 |
|
|
0.63 |
|
Adjusted operating
income(1) (non-GAAP basis)* |
|
$ |
1.43 |
|
|
$ |
2.46 |
|
|
$ |
5.11 |
|
|
$ |
5.21 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of
diluted shares upon which computations are based |
|
26,888,172 |
|
|
26,893,013 |
|
|
26,889,338 |
|
|
26,923,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
September 30,2019 |
|
December 31,2018 |
|
|
Book value per diluted
share |
|
|
|
$ |
216.69 |
|
|
$ |
195.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* This measure is non-GAAP because it is not based on accounting
principles generally accepted in the United States. This non-GAAP
measure is used by the Company to enhance comparability between
periods and to eliminate the impact of certain items listed in the
footnote below, which can fluctuate in a manner unrelated to core
operations due to factors such as market volatility, interest rate
changes and credit risk. In the opinion of the Company’s
management, inclusion of this non-GAAP measure is meaningful to
provide an understanding of the significant factors that comprise
the Company’s periodic results of operations and financial
condition.
(1) Adjusted operating income excludes the after-tax impact of
net gains (losses) on equity securities and realized investment
earnings. Realized investment earnings are comprised of realized
investment gains (losses), equity in earnings of unconsolidated
affiliates and income from non-controlling interests.
American National is a family of companies that has, on a
consolidated GAAP basis, $28.5 billion in assets, $22.7 billion in
liabilities and $5.8 billion in stockholders’ equity. American
National, founded in 1905 and headquartered in Galveston, Texas,
and its subsidiaries offer a broad portfolio of products and
services, which include life insurance, annuities, property and
casualty insurance, health insurance, credit insurance, and pension
products. The American National companies operate in all 50 states.
Major insurance subsidiaries include American National Life
Insurance Company of Texas, American National Life Insurance
Company of New York, American National Property and Casualty
Company, Garden State Life Insurance Company, Standard Life and
Accident Insurance Company, Farm Family Casualty Insurance Company
and United Farm Family Insurance Company.
American National Insurance Company, the parent company, has
been assigned an ‘A’ rating by A.M. Best Company and an ‘A’ rating
by Standard & Poor’s, both of which are nationally recognized
rating agencies, and is licensed to conduct the business of
insurance in all states except New York.
For more information, including company news and investor
relations information, visit the company’s web site at
www.AmericanNational.com.
Contact: Timothy A. Walsh (409) 766-6553
American National (NASDAQ:ANAT)
Historical Stock Chart
From Mar 2024 to Apr 2024
American National (NASDAQ:ANAT)
Historical Stock Chart
From Apr 2023 to Apr 2024